As you well know, the shortage of affordable rental housing remains at unconscionable levels and the National Housing Trust Fund (NHTF) is needed now more than ever to address this crisis.
We achieved a significant victory in 2008 when the NHTF was established, thanks to the unwavering support and advocacy of thousands of endorsing organizations. Your help is needed now to take the next critical step: to secure funding for the NHTF in order to expand rental housing that is affordable to extremely low income households by 3.5 million units over 10 years.
I am excited to share with you NLIHC’s proposal to fund the National Housing Trust Fund by reforming the mortgage interest deduction. I urge your organization to endorse this proposal now, which will expand tax benefits to middle and low income homeowners and produce savings to be directed to the NHTF.
The NHTF Campaign has endorsed our proposal, which does the following:
- Places a cap on the maximum mortgage to receive a tax break at $500,000.
- Converts the tax deduction to a non-refundable credit.
- Allows interest on mortgages for second homes and home equity loans under the $500,000 cap.
- Phases in these changes over five years.
Our analysis shows these improvements will provide more than $20 billion a year in savings that can be used to build and rehabilitate affordable rental housing by capitalizing the NHTF. And, they will provide all homeowners with mortgages with a tax break, not just those with have enough income to file itemized tax returns. With a 20% tax credit, the number of homeowners with mortgages who would get a tax break would increase from 43 million to 60 million, with 92% of the increase being households with incomes less than $100,000 a year.
Visit our new website, www.housingtaxreform.org, for more details on our proposal. You will also be able to use an online calculator to see how the mortgage interest tax reform will affect you.
Simply put, reforming the mortgage interest deduction and funding the NHTF with the savings is good public policy. It is rooted in sound analysis. And, it is the right thing to do.
In addition to endorsing our proposal, please forward this message to other organizations in your network and encourage them to sign on, too.
We need your help to get this done.
President and CEO